Account Analysis
Barron's Accounting Dictionary:
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Account Analysis
Way to measure cost behavior. It selects a volume- related cost driver and classifies each account from the accounting records as a variable or fixed cost. The cost accountant then looks at each cost account balance and estimates either the variable cost per unit of cost driver activity or the periodic fixed cost. Account analysis requires a detailed examination of the data, presumably by cost accountants and managers who are familiar with the activities of the company, and the way the company's activities affect costs.
See also engineering analysis ; high - low method ; regression method .
See also engineering analysis ; high - low method ; regression method .
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Investopedia Financial Dictionary:
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Account Analysis
1. In cost accounting, this is a way for an accountant to analyze and measure the cost behavior of a firm. The process involves examining cost drivers and classifying them as either fixed or variable costs. The cost accountant then uses the company’s data to figure out the estimated variable cost per cost-driver unit or fixed cost per period.
2. In banking, it is a periodic statement outlining the banking services provided to a firm. The statement is usually provided monthly and involves displaying all pertinent data, including the company’s average daily balance and charges that the company incurs from the bank.
Investopedia Says:
1. In accounting, account analysis is quite complex and involves in-depth understanding of both the data and the company. It is usually performed by an experienced cost accountant, possibly with the help of one of the company’s managers, who deals closely with the company’s costs.
2. In banking, you can think about account analysis as similar to the statements you receive for your personal bank accounts. Since it is for a company account, however, it is much more detailed and on a larger scale.
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Engineering Analysis
(in accounting)
Activity Charge
(in banking)
Commercial Account
(in banking)
Account Statement
(in banking)
» More